China PMI Plunges Most In 28 Months, Reverts To HSBC's Reality

Color us not stunned at all. China's Manufacturing PMI finally reverted to the reality that HSBC's Manufacturing PMI has been arguing for and fell for the first time in six months. The drop is the largest since February 2010. While still above 50 (though the lowest level of expansion in five months), or 50.4 technically, down from 53.4, and missing expectations of 52.0, it seems another engine of global growth just sputtered finally - as the real impact of a European depression and fiscally challenged US hit home.

And as a reminder, here is why unless "Europe is fixed" and quite soon, the situation will first get worse before it gets much worse:

Sorry I'm too busy to care about China while looking out for black helicopters after I realized that an e-mail to my Target buyer sent last year about how we had to recall our Japanese product after suppliers issued cancellations stemming from the earthquake and tsunami probably put me on a watch list.

Watching the ASX200 bounce of it's "support" and the AUD. Looks like intervention.

Food gates of hell will be unleashed on the Australian and Canadian markets soon. They're Keynesian mad government are running hot with the RMBS trade, desperately trying to keep their housing markets bid.

Do you think they really know what is going on around them. They just go with the flavor of the season. When Facebook IPO was cool they were cheering it like FB is this great new Quarterback and now they act as if they always knew the QB was a lemon.